invest@clearrockadvisors.com
512.735.0222

Weekly Chartbook

By: Aaron Lang - Portfolio Analyst

October 20, 2021

//
Posted By
/

Market Performance (YTD)


Source: YCharts
Disclaimer: Past performance is no guarantee of future performance

The Good News

Earnings are so far, so good

The Bad News

Earnings revisions are continuing to fall

And GDP estimates continue to be revised downwards

There seems to be a disconnect with earnings estimates and GDP estimates

The State Of The Market

The inflation concern has legs and is picking up steam. It’s less about supply chains getting worse – there are actually signs that the worst may be behind us. Though, that’s not to say it won’t be concern for a while longer. 

And, yes, there are a lot of transitory aspects of this inflation surge we are seeing

But wages have and will continue to be the signal to watch. And there’s reason to believe wage growth will continue higher than many currently believe.  

And the record high quits rate is a signal that many employees are realizing they have some power

So how have bonds done with this global inflation surge? Not great.

And yields should probably be even higher than they are now

As for stocks, margins are expected to reach record highs in 2022. If inflation continues higher than expected, those expectations may be too high.

Here are how the different sectors should be able to handle rising inflation

Charts Of The Week

Thread Of The Week

Disclosure

Clear Rock Advisors, LLC is registered with the SEC as a registered investment advisor with offices in Texas. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by Clear Rock Advisors, LLC) or any investment-related or financial planning consulting services will be profitable, equal any corresponding indicated historical performance level(s), or prove successful. It remains the client’s responsibility to advise Clear Rock Advisors, LLC, in writing, if there are any changes in the client’s personal/financial situation or investment objectives for the purpose of reviewing, evaluating or revising Clear Rock Advisors, LLC’s  previous recommendations and/or services, or if the client would like to impose, add to, or modify any reasonable restrictions to Clear Rock Advisors, LLC’s services. A copy of Clear Rock Advisors, LLC’s current written disclosure statement discussing its advisory services and fees are available upon request.